RMD
Healthcare · Medical Instruments & Supplies
Performance
RMD (RMD) Stock Analysis 2026
Rule-based · Updated daily · Not financial advice
RMD (RMD) operates in the Medical Instruments & Supplies space within the Healthcare sector. With a market cap of $28.1B, it qualifies as a mid-cap company. The company is growing revenue strongly while maintaining healthy profitability — a combination that investors typically reward with a premium valuation.
- Forward P/E (16.0×) is lower than trailing P/E (18.7×) — analysts expect earnings to improve
- Revenue growth of 11% YoY shows solid business momentum
- Exceptional profit margin of 27.4% — the business retains a large share of each dollar earned
- ROE of 25.2% shows management efficiently converts equity into profit
- Current ratio of 3.0× — ample short-term liquidity
- Price is near its 52-week low — potential entry point with asymmetric upside
- High debt-to-equity of 12.99× increases financial risk, especially with elevated interest rates
Verdict
Strong Buy
Multiple fundamental strengths with few red flags. Long-term buyers may find this compelling.
AI Insight
Powered by ClaudeAI-generated analysis for informational purposes only. Not financial advice.
Related Articles
Revenue & Results
Dividends
Current DY
1.25%
5Y Avg Annual
$1.8080
Last Payment
$0.6000
Ex-Date
05/14/2026
Annual dividends paid per share
| Ex-Date | Payment | Amount | Est. DY |
|---|---|---|---|
Latest05/14/2026 | 06/18/2026 | $0.6000 | 1.24% |
02/12/2026 | 03/19/2026 | $0.6000 | 1.24% |
11/13/2025 | 12/18/2025 | $0.6000 | 1.24% |
08/14/2025 | 09/18/2025 | $0.6000 | 1.24% |
05/08/2025 | 06/12/2025 | $0.5300 | 1.09% |
02/13/2025 | 03/20/2025 | $0.5300 | 1.09% |
11/07/2024 | 12/12/2024 | $0.5300 | 1.09% |
08/15/2024 | 09/19/2024 | $0.5300 | 1.09% |
Magic Number
Shares needed to self-fund your next purchase
$193.74
Price
$0.6000
Last div. (quarterly)
323
shares
Own 323 RMD shares ($62,578.02) and each quarterly dividend pays for 1 new share — the snowball runs on its own.
Investment target
$62,578.02
New shares / year
+4 shares
If You Had Invested…
Hypothetical return based on historical prices
* Dividend reinvestment calculated at ex-date price. For informational purposes only.
Earnings
EPS (TTM)
$10.37
P/E (TTM)
18.7
Fwd P/E
16.0
Earnings History
SEC EDGAR · official filings
SEC Filings
Official EDGAR documents
Key Statistics
Valuation
Trading
Dividends
Profitability
Balance Sheet
Fair Value Estimates
Current price: $193.74
Graham Number
√(22.5 × EPS × Book Value)
$102.19
Benjamin Graham's intrinsic value formula. Assumes a fair stock trades at no more than 22.5× the product of EPS and book value per share.
Bazin Ceiling Price
Avg. Annual DPS (5Y) ÷ 6%
$31.53
Décio Bazin's dividend-based ceiling. The max price you should pay so that dividends alone deliver at least 6% annual yield on your cost basis.
These are simplified estimates. Not financial advice.
Buy & Hold Checklist
Quality criteria for long-term holding
9/10
90% score
Pays dividends
14Y hist.14+ years of dividend history
Dividend consistency (5Y+)
14 yrsUninterrupted dividend payments for at least 5 years
ROE above 10%
25.2%Return on equity — measures how efficiently capital is used
Positive profit margin
27.4%Net profit margin must be positive — company earns more than it spends
Revenue growth (annual)
+10.8%Annual revenue must be growing compared to the prior year
Earnings growth (annual)
+10.5%Annual earnings must be growing compared to the prior year
Debt/Equity below 2×
12.99×Low financial leverage reduces risk of distress
Current ratio above 1
3.01×Short-term assets must cover short-term liabilities
Daily liquidity above $5M
$252M/dayHigh trading volume ensures easy entry and exit
Dividend yield above 0%
1.25%Stock must distribute income to shareholders
Related Assets
Healthcare
About RMD
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications to diagnose, treat, and manage respiratory disorders in the United States and internationally. The company operates in two segments, Sleep and Breathing Health, and Residential Care Software. It offers sleep recorders for the diagnosis and titration of sleep apnea in sleep clinics, hospitals, and at home, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry; and EasyCare Tx, a sleep lab solution. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; and connectivity module which provides a cellular connection between compatible ventilation devices and AirView system. In addition, the company offers Brightree solutions which are solutions and services for organizations in home medical equipment and pharmacy, orthotic and prosthetic, and home infusion; HEALTHCAREfirst solutions that offers electronic health record, software, billing and coding services, and advanced analytics that enables home health and hospice agencies to optimize clinical, financial and administrative processes; MatrixCare EHR software as a service solutions used by skilled nursing and senior living providers, life plan communities, and home health and hospice sectors; and MEDIFOX DAN software solutions that is used by residential care providers, such as home health and nursing home providers. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.
Sector
Healthcare
Industry
Medical Instruments & Supplies
Location
San Diego, United States
Employees
10,600